KCTA cuts retirement age

The Korea Container Terminal Authority (KCTA) shortened their retirement age and introduced a peak-pay system for the first time amongst domestic public corporations. The changes go into effect at the beginning of 2004.
Mr. Youngnam Kim, president of the KCTA, and Ilhwan Kim, KCTA labor union chief, signed the agreement September 15. The KCTA labor union consented to shortening workers?retirement ages. Those first?class pay grades and over will have their retirement age shortened by one year, second-class workers will work until age 58, down from the current 60, and workers third-class and below will retire at 57.
If workers retire 3 years early, the corporation will retire them as contract workers at 75% of their pre-retirement salary in the first contract year, 55% in the second year and 35% in the last year.
An official at the KCTA said that the system would guarantee the age limit for the old as well as allow the corporation to employ new workers, saving on human resource expenditures, and create jobs for the young unemployed.
The new system will help four first?class workers to reach early retirement next year and in turn create 5-6 new positions.
President Kim said that shortening the retirement age and peak-pay system would lessen unemployment for those entering the workforce, creating an estimated 60,000 new jobs if 300 public corporations adopt the system.
A KCTA labor union vote was overwhelmingly in favor of the system with 85% voting for it.